Last year’s coronavirus-triggered market turmoil exposed vulnerable areas in the U.S. economy that need to be addressed by the nation’s top-level financial supervisory group, Treasury Secretary Janet Yellen said Wednesday.
Yellen told members of the Financial Stability Oversight Council that she wants the panel to examine what needs to be done to better protect the financial system from further turmoil. It should also study the impact of climate change on the stability of financial institutions, she said.
“Almost exactly one year ago, the pandemic’s outbreak caused significant stress in the economy and in the financial system,” Yellen told the panel during its public session. “In response to the deep uncertainty, investors sought safety in the form of cash and sort-term government securities. Bond markets became illiquid.”